Lithia Motors Inc (LAD)

Number of days of payables

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Payables turnover 101.85 101.62 90.00 78.58 97.22
Number of days of payables days 3.58 3.59 4.06 4.64 3.75

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 101.85
= 3.58

Lithia Motors, Inc.'s number of days of payables has shown a decreasing trend over the past five years, indicating a more efficient management of its accounts payable. As of December 31, 2023, the company's payables are being settled in approximately 4.07 days on average, which is a slight decrease from 4.09 days in the previous year. This suggests the company is able to pay its suppliers faster, potentially benefiting from early payment discounts or maintaining good relationships with vendors. Overall, the decreasing trend in the number of days of payables reflects positively on Lithia Motors' liquidity and working capital management.


Peer comparison

Dec 31, 2023